President wants banks to pay up

WASHINGTON - President Obama told banks Thursday they should pay a new tax to recoup the cost of bailing out foundering firms at the height of the financial crisis. "We want our money back," he said.

In a brief appearance with advisers at the White House, Obama branded the latest round of bank bonuses as "obscene." But he said his goal was to prevent such excesses in the future, not to punish banks for past behavior.

The tax, which would require congressional approval, would last at least 10 years and generate about $90 billion over the decade, according to administration estimates.

BANK FEE PROPOSAL

President Obama's bank fee proposal at a glance:

► Who pays: Financial institutions with assets of $50 billion or more. That would include firms such as Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo and Co., all of whom accepted bailout money and have repaid it. It also includes American International Group, which accepted nearly $80 billion and has not paid it back. The fee would affect about 50 large firms.

► Who doesn't pay: Smaller community banks and some large banks with assets of less than $50 billion, and General Motors Co. and Chrysler Group LLC, who received about $66 billion in government loans and aren't expected to pay all of it back.

► How the tax works: It levies a tax of 0.15 percent on bank liabilities, excluding FDIC-assessed deposits and insurance policy reserves.

► How much it raises: $90 billion over 10 years. Sixty percent of the revenue would come from the top 10 firms.

► What's the intent: Raise enough money to cover an estimated $117 billion shortfall in the $700 billion financial bailout fund. The tax would be designed to continue beyond 10 years until the money is recouped.